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October Lean Hogs opened higher, made the session low at 82.275 and then rallied into mid-morning to the high at 84.40. It pulled back into the close and settled at 83.675. A strengthening cutout gives hope that demand concerns are overblown and could lead to a recovery in the Hog market after last week’s breakdown in price. The futures rally took price back above the key level at 83.325 and it is critical in my opinion to hold this level. If the cutout can continue to come back and challenge the recent highs, it could incentivize more short-covering in the market. Weights and slaughter have come down shortening production and with Labor Day coming up we may be able to see a rebound in the cutout. The cash market could stabilize after its recent decline and give bulls a chance. Traders are watching weights and slaughter numbers as this could be the key for sentiment. Lower slaughter and lower weights could finally show the supply disruption traders have been patiently waiting for. If a rising cutout confirms this, we could see a nice bounce I the market. We’ll see!... A failure from 83.325 could see price test the Monday low. Support then comes in at 81.70. If price can hold settlement, it could re-test resistance at 85.325. Resistance then comes in at 87.10.
The Pork Cutout Index increased and is at 100.60 as of 08/07/2026.
The Lean Hog Index decreased and is at 96.30 as of 08/06/2026.
Estimated Slaughter for Monday is 483,000, which is above last week’s 418,000 and last year’s 481,637.
**Call me for a free consultation for a marketing plan regarding your livestock needs.**
Ben DiCostanzo
Senior Livestock Analyst
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109
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